Economic commentators have urged the government as well as the country’s central bank to consider possible replacement of some bank notes, with a view of mopping out public funds, purportedly hidden outside the banking system.
The call was made by Centre for Democracy and Economic Development Initiatives (CDEDI) Executive Director Sylvester Namiwa, who urged the new administration to recover misused public funds and address economic challenges facing Malawians.
Namiwa clarified that by “changing currency,” he means the government should withdraw or replace high-value notes such as the K2,000 and K5,000 bills— so that those hoarding large sums of money are forced to return it to the banking system.
“Malawians are starving because of a lack of food, and as the rainy season approaches, they will also need fertilizer,” Namiwa said.
“We continue to suffer under heavy public debt when there’s still money in the wrong hands.”
Namiwa suggested that the government should give a 60-day ultimatum to individuals hoarding large sums of money to return it.
He pointed out that such action aligns with democratic principles that promote accountability and competition of ideas.
Commenting on the matter, Malawi Economic Justice Network (MEJN) Executive Director Bertha Phiri, backed the call, saying recalling stashed cash could help expose corruption and money laundering in the country.
“This will help investigate people who are keeping stashes of money because that’s a corrupt act,” said Phiri.
She cautioned that a sudden withdrawal of the K5,000 and K2,000 notes could disrupt the informal economy, which heavily depends on cash transactions.
“Not everyone keeps money in banks. Many people in rural areas rely on cash, so any change must consider their situation,” Phiri added.
Economist Fredrick Banda from the Malawi University of Business and Economic Sciences also supported the idea but warned that implementation could be difficult.
“It may not be easy for individuals who earn money through illegal means to comply with such an order,” Banda said.
By Hellen Luwayo, Balaka
